How Washington income tax works
Washington does not levy a state individual income tax. Wages, salaries, investment income and retirement income are all free of state-level income tax here.
That means your state take-home pay equals your gross pay, before federal tax and FICA. It is one of the main reasons people compare WA with higher-tax states.
Washington has no tax on wage income, but levies a 7% tax on long-term capital gains above an annual threshold.
What you still pay in Washington
No income tax does not mean no taxes. Washington still funds services through other channels.
Sales tax runs about 9.40% combined, and the average effective property tax rate is around 0.84%.
Federal income tax and payroll taxes (Social Security and Medicare) still apply to your earnings regardless of the state you live in.
Is Washington actually cheaper?
For high earners, skipping a state income tax can mean keeping thousands more each year. For others, higher sales or property taxes can offset some of the benefit.
Compare total tax burden, not just income tax, when weighing a move. Use the sales and property tax tools for Washington to build the full picture.
Frequently asked questions
Does Washington have a state income tax?
No. Washington is one of the states with no individual income tax on wages or other income.
What taxes do I pay in Washington?
You still pay federal income tax and payroll taxes, plus state and local sales tax (around 9.40% combined) and property tax (about 0.84% effective).
Is income from investments taxed in Washington?
Washington taxes long-term capital gains over roughly $270,000 at 7%; ordinary income is untaxed.
How accurate is this calculator?
It reflects that Washington has no state income tax. Federal tax still applies. Confirm details with the Washington Department of Revenue (dor.wa.gov).